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Organizational Change, Skill Formation, Human Capital Measurement: Evidence From Italian Manufacturing Firms

  • G. Antonelli
  • R. Antonietti
  • G. Guidetti

This paper emphasizes the role of labour demand as a determinant of human capital formation. After a section in which the alternative conceptions on the functioning of labour markets are presented and different ways of measuring human capital are compared, an applied analysis is carried out in which we provide a labour-demand-oriented measure of human capital, as defined by the amount of specific skills firms generate through work-based training (WBT) activities. By merging three rich firm-level datasets, we estimate the impact of a set of variables supposed to affect both the propensity to invest in WBT and the intensity of training within the Italian manufacturing industry over the period 2001-2005. Special attention is devoted to the variables characterizing within-firm organization of knowledge, organizational change and the formation of competence pipelines: among them, innovation, internationalization commitment, out-sourcing and new hirings. The estimates show that the effect of innovation on WBT is higher when the introduction of new technologies is supported by organizational innovations. When looking at the nature of WBT, we investigate the different determinants of the firms' propensity to provide both in-house and outside training. We measure training intensity in terms, respectively, of the number of provided training activities, private and total training costs and share of trainees. Copyright � 2010 Blackwell Publishing Ltd.

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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 661.

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Date of creation: Mar 2009
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Handle: RePEc:bol:bodewp:661
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  1. Wößmann, Ludger, 2003. "Specifying human capital," Munich Reprints in Economics 19660, University of Munich, Department of Economics.
  2. Johnson, Joanne & Baldwin, John R. & Gray, Tara, 1995. "Technology Use, Training and Plant-specific Knowledge in Manufacturing Establishments," Analytical Studies Branch Research Paper Series 1995086e, Statistics Canada, Analytical Studies Branch.
  3. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  4. Antonietti Roberto, 2007. "Opening the "Skill-Biased Technological Change" Black Box: A Look at the Microfoundations of the Technology-Skill Relationship," Economia politica, Società editrice il Mulino, issue 3, pages 451-476.
  5. Giuseppe Folloni & Giorgio Vittadini, 2010. "Human Capital Measurement: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 248-279, 04.
  6. Roberto Basile & Anna Giunta & Jeffrey B. Nugent, 2003. "Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis," Industrial Organization 0312001, EconWPA.
  7. Johnson, Joanne & Baldwin, John R., 1995. "Human Capital Development and Innovation: The Case of Training in Small and Medium Sized Firms," Analytical Studies Branch Research Paper Series 1995074e, Statistics Canada, Analytical Studies Branch.
  8. Trinh Le & John Gibson & Les Oxley, 2003. "Cost- and Income-based Measures of Human Capital," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 271-307, 07.
  9. Heinz Hollenstein & Tobias Stucki, 2008. "The Impact of ICT Usage, Workplace Organisation and Human Capital on the Provision of Apprenticeship Training : A Firm-level Analysis Based on Swiss Panel Data," KOF Working papers 08-205, KOF Swiss Economic Institute, ETH Zurich.
  10. Agarwal, Rajshree & Audretsch, David B, 2001. "Does Entry Size Matter? The Impact of the Life Cycle and Technology on Firm Survival," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 21-43, March.
  11. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
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